house builder changes his mind..

kendogs

yesterday me and my fiance signed a reservation form for a new build property which is only 2 weeks from completion..

as they need to sell it quickly we were offered a purchase price of 202,400 instead of 211,500.... needless to say we bit their hand off and signed on the dotted line and paid a £500 reservation fee.

3 hours later the sales office rang me bakc and said the m.d of the company would not sell it to us at this reduced rate and wanted the full price..

my question is legally is he entitled to do this and what can i do about it?

skintchick

I wouldn't have though so, but you need to check the small print in your copy of teh form.

distilled

Unfortunately they are able to do this. The reservation form is just that. Only the contract legally binds both parties. Having said that, this is very poor practice and I think you should name and shame the builder.

Ian_W

distilled wrote: The reservation form is just that. Only the contract legally binds both parties.

I always that it reserved it at a specified price? On the basis that distilled knows best being in the trade I stand corrected. But if you'd pulled out of the deal or tried to gazunder by offering a lower price and refusing to buy at the agreed price, you'd surely have lost your £500?

Only answer is COMPLAIN to MD direct as strongly as poss and on no account accept new price. Tell him unless they honour the agreement you will be contacting:

Local Trading Standards [shoddy practice]
Local press [great publicity for them]
Any trade body they belong to
Parent Company if there is one
National press consumer column

If you can think of any others throw them in as well.

BoL, name & shame them here as well.

nmiah786

Ian_W wrote:

I always that it reserved it at a specified price? On the basis that distilled knows best being in the trade I stand corrected. But if you'd pulled out of the deal or tried to gazunder by offering a lower price and refusing to buy at the agreed price, you'd surely have lost your £500?

Only answer is COMPLAIN to MD direct as strongly as poss and on no account accept new price. Tell him unless they honour the agreement you will be contacting:

Local Trading Standards [shoddy practice]
Local press [great publicity for them]
Any trade body they belong to
Parent Company if there is one
National press consumer column

If you can think of any others throw them in as well.

BoL, name & shame them here as well.

Agree completely with the above, especially the last bit. Yes name and shame them!

What does the reservation small print say. Does it say anything like the reservation is subject to director approval. I discovered quite a few times that even though that you might make the deal with the sales person on site, the director has overall say on whether the deal goes through.

I would say that you hold your ground and see how the builder reacts!!!

Good luck

distilled

The reservation form imposes a time limit for exchange. The builder will merely delay proceedings and then legitimately cancels the reservation. Total sh**e I know but its another case of "caveat emptor"

Name these scum!

kendogs

thanks for the help peeps..

i held firm and refused to budge..

they folded like a pack of cards!

the house is mine for the reservation price.

sashacat

Absolutely brilliant...name them anyway

pstones578

Sounds like bait and switch to me.

nmiah786

Name and shame the builder

Well done....

kendogs

the builder was morris homes!